NYSEG wants to raise rates on delivery, and here is what the public thinks

Laurie Wheelock, an attorney with the Public Utility Law Project, speaks in opposition to the New York State Electric & Gas Corp. rate increase proposal at a public hearing in Binghamton on Aug. 15, 2019.
Jeff Platsky, jplatsky@gannett.com | @JeffPlatsky

42 people spoke during a four-hour hearing at Binghamton City Council chambers

Story Highlights

Some opponents say the utility company is not doing enough to battle climate change.

Only one customer service center will remain open in the Southern Tier — in Vestal.

How much more will you pay? The expected increase is $11.33/month for a customer.

If the ratepayers had their way, New York State Electric & Gas Corp. would be denied a 23% electric delivery rate increase and would be forced to make a more aggressive effort in reducing the utility’s carbon footprint.

In almost unanimous agreement, speakers addressing New York Public Service Commission representatives Thursday night in Binghamton said the increase is unaffordable for the average customer, some of whom already have difficulty meeting basic needs, while also urging regulators to enforce more aggressive efforts to battle climate change.

Though many of the speakers said they want regulators to summarily reject the rate increase proposal, if the case follows past form, regulators and the company will eventually arrive at a negotiated settlement, likely a multi-year agreement that phases higher electric rates over a set period. How the commission will address ratepayer demands for the utility to pursue more sustainable power policies will be the subject of debate.

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More than 40 speakers addressed the New York State Electric & Gas Corp. rate increase proposal during a four-hour public hearing at the Binghamton City Council chambers on Aug. 15, 2019/(Photo: Jeff Platsky/Press & Sun-Bulletin)

“NYSEG has the lowest residential electric bills in New York state,” said Mark Marini, senior director of regulator affairs for Avangrid, NYSEG’s parent company. The utility will still have the lowest electric delivery rates in the state if the proposed increase is adopted and will have among the lowest natural gas delivery rates in the state, Marini said.

But those words were no solace to irate ratepayers who took the utility to task for a proposed increase they characterized as untenable.

“The problem is a lot of customers are already struggling to pay their bills,” said Laurie Wheelock, of the Albany-based Public Utility Law Project, a public interest group. She urged the Department of Public Service to assure “rates are just, affordable and fair.”

Environmental concerns

Several speakers also spoke forcefully on what they claimed is the utility’s flouting of carbon emission goals, specifically addressing the planned replacement of a 66-year-old gas line from DeRuyter to Oneonta using pipes with greater capacity. Rather than reducing consumption, speakers said, replacing with 50-mile pipeline with a larger diameter conduit would encourage increased natural gas use, in direct conflict with the state’s initiative to reduce greenhouse gas emissions.

“It is wrong for our residents and wrong for our planet to allow this massive buildout of our natural gas infrastructure,” said Patricia Jacob, Town of Oneonta council member.

The utility also came under sharp criticism for its failure to provide incentives for alternatives to natural gas, such as heat pumps and other green initiatives. During the two-hour public comment period, NYSEG was called “recalcitrant” in adopting more environmentally friendly policies.

Utility representative pushed back on the claim that the proposal ignored reduction of greenhouse gases.

"In addition to efforts to improve reliability and resiliency, the rate cases reaffirm our commitment to clean energy technologies," said Michael Jamison, manager of corporate communications at NYSEG. "The proposals support various energy efficiency and electric vehicle programs, while also supporting the development of energy storage projects."

A large portion of the electric delivery increase will be devoted to investments into the distribution system to make it more resilient in the face of more severe “weather events.” NYSEG representatives said more than 50% of the power interruptions between 2015 and 2019 can be attributed to trees and branches coming into contact with electric lines. Initiating an aggressive tree-trimming program will bolster the delivery system’s ability to withstand future storms.

Customer service center closings

Among the other proposals included in the rate case is a plan to shutter 15 of 18 walk-in customer service centers across the service territory. Two of three to remain open are in Rochester, with the other in Vestal.

By the end of the four-hour hearing at Binghamton City Council chambers, 42 speakers addressed the NYSEG rate case.

Comments at a series of public meetings held throughout the service territory will be forwarded to the five-member Public Service Commission, which will have the final say on the rate case.

“Your opinions count very much to me personally and to other members of the commission,” said PSC Commissioner John Howard, the sole commission member attending the Binghamton hearing.

How much will NYSEG rates rise?

NYSEG is asking for a 23.7% increase in electric delivery rates, translating to an increase in the bill of $11.33 a month, which will bring the average cost of delivery to $53 each billing period.

Rochester Gas and Electric Corp. customers will be hit with a smaller increase in electric delivery rates — 5.4%, $2.86 a month, raising the average bill to about $53 each month.

You’ll be paying more to get natural gas to your home, too — 2.3%, $2.76 a month for RG&E customers for a total of $43 monthly; 4.5%, $1.71 a month to total $56 for NYSEG customers.

The current three-year rate plan for NYSEG and RG&E lapsed in April. Both utilities will hold rates stable until May 2020, during the Public Service Commission review process.

If the rate request is approved as submitted, the upward adjustment will produce $200 million in additional revenue for the NYSEG and RG&E.

Last increase went into effect May 2016

In the last rate case approved in 2015, NYSEG electric delivery rates increased by 12.8%, phased in over a three-year term; natural gas 23.5%; RG&E electric rates 11.7%; and natural gas 15.6%, according to securities filings.

Since the restructuring of the electric industry in New York about 20 years ago, NYSEG and RG&E are responsible for the delivery of electricity and natural gas across the service territory. As the only owner of pipes and wires in the territory, they must seek rate approval from regulators.

Supply is not subject to regulation and is now governed by market forces, with customers selecting their own independent company to provide the commodity. However, because of the often convoluted and daunting process involved in choosing an electric supplier, many residential customers have defaulted to the resident utility for electric and natural gas supplies.

Internet or email: Go to dps.ny.gov, click on “Search,” enter the applicable case number (19-E-0378, 19-G0379, 19-E-0380, 19-G-0381) and then click the “Post Comments” button at the top of the page. Email comments to the Secretary for the Commission at secretary@dps.ny.gov.

By mail or hand delivery: Comments may be mailed or delivered to the Honorable Kathleen H. Burgess, Secretary, Public Service Commission, Three Empire State Plaza, Albany, NY 12223-1350.

Toll-free opinion line: 800-335-2120 is set up to take comments about pending cases from in-state callers, 24 hours a day. Comments provided through this line are not transcribed, but a summary is provided to the ALJs and to the commission for their consideration.

Comments submitted via these alternative means are requested by Aug. 26, although comments will be accepted throughout these proceedings. Written comments received by the department will become part of the record considered by the commission.

Written comments may be viewed online by going to dps.ny.gov, clicking on “Search,” entering the applicable case number (19-E-0378, 19-G-0379, 19-E-380, 19-G-381), and then clicking on the “Public Comments” tab.